- •Acknowledgement
- •Abstract
- •International Market Entry Strategies
- •Regulatory Environment
- •Challenges of International Expansion
- •Purpose of the Study
- •Research Objectives
- •Research Questions
- •Justification for the Study
- •Scope of the Study
- •Delimitations
- •Chapter 2: Literature Review
- •Introduction
- •International Expansion
- •Internationalization/Transaction-Cost Theory
- •Eclectic Theory
- •Resource-Based Theory
- •Uppsala Model
- •International Market Entry Strategies
- •Exporting
- •Licensing
- •Franchising
- •Joint-Ventures/Strategic Alliances
- •Acquisitions
- •Wholly-Owned Subsidiaries/Greenfield Operations
- •Figure 2‑1: Selecting Market Entry Mode: Risk Profiling
- •Regulatory Environment
- •Challenges of International Expansion
- •Research Gaps
- •Chapter 3: Research Methodology
- •Introduction
- •Research Methodology
- •Research Methods
- •Research Approach
- •Research Design
- •Choice of Companies
- •International Expansion
- •Host Country Overview: Kenya
- •Company Overview: eabl
- •Table 4‑1: Kenyan Beer Market
- •Source: Irungu (2012)
- •Market Entry Strategy
- •Regulatory Environment
- •Market Performance
- •Market Challenges
- •Case Study: sab Miller (Colombia – Grupo Bavaria)
- •Company Background: sab Miller
- •International Expansion
- •Host Country Overview: Colombia
- •Company Overview: Grupo Bavaria
- •Market Entry Strategy
- •Regulatory Environment
- •Market Performance
- •Market Challenges
- •Chapter 5: Discussion of Findings
- •Introduction
- •Case Analysis: Diageo (Kenya)
- •Case Analysis: sab Miller (Colombia)
- •Cross-Case Analysis
- •Chapter 6: Summary, Conclusions, and Recommendations
- •Introduction
- •Summary
- •Conclusions
- •Recommendations
- •Future Research
- •Chapter 7: References
- •Chapter 8: Appendices Table 8‑2: Common Size Analysis: Diageo and sab Miller
- •Source: Diageo (2013) and sab Miller (2013a)
- •Table 8‑3: Comparison of Market Entry Modes and Performance
- •Source: Diageo (2013a), eabl (2013), and sab Miller (2013)
Chapter 8: Appendices Table 8‑2: Common Size Analysis: Diageo and sab Miller
Common Size Analysis: Diageo and SAB Miller |
||
Factor |
Diageo** |
SAB Miller |
Group Net Revenues |
$19.1 billion |
$23.2 billion |
Operating Profit |
$5.9 billion |
$4.2 billion |
Net Profit |
$4.3 billion |
$3.5 billion |
Latin America |
||
Net Revenues |
$2.1 billion |
$7.8 billion |
Operating Profit |
$613 million |
$1.9 billion |
Africa |
||
Net Revenues |
$2.7 billion*** |
$7.2 billion* |
Operating Profit |
$534 million*** |
$1.5 billion* |
Source: Diageo (2013) and sab Miller (2013a)
* - includes South Africa, ** - £1 = $1.67, *** - includes; Turkey & Eastern Europe
Table 8‑3: Comparison of Market Entry Modes and Performance
Comparison of Market Entry Modes and Performance |
||
Factor |
Diageo/EABL – Kenya) |
SAB Miller/Bavaria – Colombia) |
Alcohol Market |
$800 million |
$5.9 billion |
Market Revenues |
$578.4 million* |
$3.7 billion** |
Equity Stake |
50.03% |
99.0% |
Market Entry Mode |
Acquisition |
Acquisition |
Value |
$300 million |
$7.8 billion |
Market Presence |
Kenya, Uganda, Tanzania, South Sudan, and Rwanda (exports) |
Colombia, Bolivia, Peru, Ecuador, Panama, and Costa Rica. |
Comments |
Diageo has been able to organically grow the market without additional funds. |
SAB Miller has positioned brands to be market leaders in all the 6 countries and dominate sales. |
Source: Diageo (2013a), eabl (2013), and sab Miller (2013)
*- Kenya Revenues, ** - Colombia Revenues
|
|